Signal Bay Inc (OTCMKTS:SGBY)
Signal Bay Inc (OTCMKTS:SGBY) was up by 1.13% in Monday’s trading session after announcing the expansion of its EVIO labs into Florida. The expansion comes days after the company expanded its footprint into Southern California in pursuit of new opportunities for their analytical testing services.
In Florida, Kaycha Holdings will provide EVIO Labs services as part of licensing agreement. Expansion in Florida, according to Chief executive officer William Waldrop, should allow the company to continue executing on its core mission of providing clean cannabis to patients.
“Our Florida expansion also marks another first as we executed our first license agreement. We are excited to have found a partner with deep ties to the community and shares our common core values,” said Mr. Waldrop.
Signal Bay Inc. (OTCMKTS:SGBY), through its subsidiary, provides analytical testing services as well as scientific research on matters pertaining to legal cannabis. The company also operates state of the art testing facilities that verify the safety and potency of the nation’s cannabis supply.
Signal Bay Inc (OTCMKTS:SGBY) has operations in California, Oregon, and Florida as it continues to pursue licensing agreements in other states that have also approved medical marijuana. Expansion into Southern California presents the company an opportunity to target a market that is growing robustly and expected to be worth $6.46 billion by 2020.
Massachusetts is another target market that the company has set its eyes on. Recently it’s signed a definitive agreement for the acquisition of Viridis Analytics MA. The acquisition is one of a handful of cannabis testing laboratories in the state, serving clients from its headquarters in Southborough.
Growing demand for testing Services
Cannabis’ legalization drive has led to an increase in demand for marijuana products for both medicinal and recreational purposes. Increased consumption has led to an uptick in calls for lawmakers to enact regulations that ensure the safety of marijuana products in the market.
Demand for accredited testing services is expected to continue growing and presenting unique opportunities that Signal Bay Inc. (OTCMKTS:SGBY) can tap into. Massachusetts’ cannabis testing market alone could grow to highs of $30 million by 2020.
“We have cutting edge testing equipment, the expertise, gravitas and a head start on competition in what are expected to be massive markets, As we cement our positions in these markets, our strategy is to identify optimal organic and inorganic growth opportunities to cascade our labs across the country,” said Mr. Waldrop.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.